Business
UBS in Profit Zone, Credit Suisse Integration Underway
The costs for the integration of Credit Suisse amount to 1.02 billion dollars in the first quarter.
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After UBS Group AG exceeded analysts' expectations in the first quarter of 2024, recording a net income of 1.755 billion U.S. dollars, the bank confirmed that the integration of Credit Suisse is progressing as planned. This marks a return to profitability following two consecutive quarters of loss and a profit of 1.03 billion U.S. dollars in the same period last year. Shares rose by 8.1% to 26.91 CHF following this announcement.
Despite the challenges associated with the acquisition of Credit Suisse, including high costs and stricter regulatory requirements in Switzerland, the bank achieved better results than expected. The costs for integration amounted to $1.02 billion in the quarter, less than in the previous two quarters. UBS achieved cost savings of approximately $1 billion in the same period.
The Bank Reaffirms Its Forecast for the Fiscal Year and Continues to Expect that the Total Integration Costs will Reach Approximately 3.5 Billion US Dollars by the End of 2024, with a Slowdown in Cost Savings in the Coming Quarters. UBS Plans to Complete the Merger of the Two Banking Operations UBS AG and Credit Suisse AG by the End of May and to Unite the UBS and Credit Suisse Business Units in Switzerland in the Third Quarter.
The adjusted pre-tax profit meanwhile rose to 2.62 billion US dollars, compared with 1.57 billion US dollars in the previous year. Total revenues for the quarter were at 12.74 billion US dollars, an increase from 8.74 billion US dollars in the previous year.
The managed assets in the key business Global Wealth Management exceeded the 4 trillion US dollar mark, with 27 billion US dollars in new net assets in the first quarter.
UBS expects a decline in net interest income in Global Wealth Management as well as in personal and corporate banking in the low to mid-single-digit percentage range in the second quarter.